Gold price falls to lowest since March

Gold prices continue to fall amid a strengthening dollar and expectations of continued high global interest rates.

Reuters reports this.

Analysts explain that the gold market is currently under pressure from several factors – from rising real interest rates to rising US Treasury yields.

According to Marex analyst Edward Meir, the key influence on the price of gold is the rise in real interest rates in many countries around the world.

“We are seeing real interest rates rising in many countries around the world, and this is actually mainly affecting gold. The dollar has also strengthened, which is a negative factor,” he noted.

Market fears that inflation could accelerate again due to high oil prices and tensions in the Middle East could cause central banks to maintain tight monetary policy for longer.

Meanwhile, rising 10-year U.S. Treasury yields, which are near a 10-year high, are also putting pressure on gold, as investors are more likely to choose higher-yielding assets over the precious metal, which does not generate interest income.

Ole Hansen, head of commodity strategy at Saxo Bank, said that short-term macroeconomic events have created a more challenging backdrop for gold, although long-term interest in the metal remains.

According to Reuters, the spot price of gold fell 1.5% today to $4,498.43 an ounce. At the beginning of trading, quotes fell to the lowest level since March 30.